System and method for image depositing, image presentment and deposit taking in a commercial environment

ABSTRACT

A method and system provides for scanning a check and/or cash to create an electronic image of the front and the back of the check and/or cash. The image is then processed and transmitted electronically to a central location. The image may be recreated into a paper form at the central location, resembling the original paper check or cash, including a machine-readable regeneration of the MICR code line data captured from the original instrument. Paperless processing of checks and cash is thus provided, including local voiding and storage of the check without requiring immediate pickup, while still allowing the transaction to be process.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application claims priority to Provisional Applications Nos.60/092,486 and 60/092,487, both filed Jul. 7, 1998, the disclosures ofwhich are specifically incorporated by reference herein.

FIELD OF THE INVENTION

In one aspect, the present invention relates to the transfer andhandling of printed checks and/or cash using electronic representationsof the checks and/or cash, and in particular to a method and system foraccepting, canceling, copying, transmitting, and creating Magnetic ImageCharacter Recognition (MICR) encoded paper facsimiles of the checks, andverifying checks in an electronic manner that allows paperless orminimal paper use processing.

In another aspect, the present invention relates to providing bankinginstitutions with the capability to process deposits for other banks,accepting deposits at merchant locations, and accepting transactions andchecks from places like brokerage offices, businesses, lock boxes,overseas locations, and bank branches and offices.

In yet still another aspect, the present invention relates to a systemand method of use for implementing an image deposit system, inparticular, as used in a self-service customer environment which reducesdeposit processing time and costs.

BACKGROUND OF THE INVENTION

Within the banking environment, checks are very heavily used as a methodof payment for goods and services, and for the transfer of funds betweenpeople. One of the very significant costs that banks and businessesincur is the handling and transportation of checks between the businesslocation and the bank, and between the depository bank and the payingbank.

More generally, the U.S. check payment system currently processes 65billion items annually, and this number continues to grow even thoughvarious forms of electronic payments are increasing. As a result, thetime to process such transactions, including crediting of deposits incustomer accounts is getting greater and greater. Thus, there is a needto substitute, replace, or eliminate much of the transit ortransportation costs associated with checks and to provide a method andsystem for paperless or minimal paper use processing.

In this context, the banking and the automatic teller machine (ATM)manufacturing industry has experimented with check image systems for anumber of years with little success. Some of the reasons for the lack ofsuccess include the failure to properly design the ATM applications andhardware for a satisfying customer experience, as well as the failure toaddress the entire system, i.e., the depositing customer, the checkpayment system, the paying bank and the customer who wrote the check.

In accordance with the invention herein, the problems of the prior art,check imaging systems are avoided and a comprehensive system for imagingdepositing, presentment and deposit taking in a commercial environmentis provided. In part, this is possible because of existing point ofsale, check acceptance devices, improvements in data bandwidth andtransmission time for images available for ATM installation, and betterimage compression and Courtesy Account Recognition (CAR) software, allof which are commercially available, and which are implemented in theinvention in a unique and novel system which overcomes a number ofproblems of the prior art.

SUMMARY OF THE INVENTION

It is thus one object of the invention to provide a method and system toimage check items at an ATM, collect MICR code line and otherinformation about the check and deposit account, and transmit the imageand data directly to an image remote system capable for processing.Because the image can be substituted into the check processing system,pickup of the physical items can be delayed or eliminated, resulting inlarge cost savings and improvements in payment settlement time.

It is another object of the present invention to overcome the problemsof the prior art by providing a method and system for copying andtransferring checks electronically and then creating an MICR encodedpaper facsimile of the check or using another paperless method to enterthe check into the check collection system.

It is a further object of the present invention to accept and cancel apaper check, including providing a method for reproducing a check thathas been scanned.

Yet still further, it is an object of the present invention to verifychecks in an electronic or other paperless manner.

It is a further object of the invention to provide a paperless method toenter a check into the check collection system, accept deposits of onebank for other banks, accept deposits at merchant locations, and accepttransactions and checks from places like brokerage offices, businesses,lock boxes, overseas locations, and bank branches and offices.

It is still another object to accept and cancel a paper check, toprovide a method for reproducing a check that has been scanned, andregenerating the originally captured MICR code line data on the paperreproduction to verify checks in an electronic or other paperlessmanner.

A still further object is to provide the capabilities discussedpreviously for cash transactions.

One embodiment of the present invention solves the problems of the priorart by scanning a check to create an electronic image of the front andback of the check, capture the MICR code line data through magnetic oroptical character recognition (OCR) technology, and then processing andtransmitting the scanned check and captured MICR code line dataelectronically to a central location. The electronic image is recreatedinto a paper form resembling the original paper check, and the paperform is MICR encoded. In another embodiment, paperless transactions forchecks is accomplished, and variability between paper and paperlesscheck processing is possible in order to enable bank evolution topaperless transactions. Optionally, the check is presented in anelectronic access location, such as an automatic teller machine (ATM), acustomer access terminal (CAT), or other check scanning depositoryterminal connected to a network. The same can be done with cash.

Yet still another embodiment provides for scanning a check to create anelectronic image of the front and back of the check and captured MICRcode line data, and transmitting the scanned check and dataelectronically to a central location of one bank, accepting deposits atmerchant locations, accepting deposits of one bank for another, andaccepting transactions and checks from places like brokerage offices,businesses, lock boxes, overseas locations, and bank branches andoffices. In one embodiment, the electronic image is recreated into apaper form resembling the original paper check, and the paper form isMICR encoded with the regenerated MICR code line data previouslycaptured from the original check item. While the invention is generallydescribed in terms of being implemented with instruments such as checks,it is possible to allow similar processing of cash transactions wherethe cash note is scanned in and held in a secure location, whileappropriately prepared images of the scanned note are used to processthe transaction electronically.

Thus, in one specific aspect, the invention relates to a method forimage based transactions. An instrument or cash is received at a firstlocation, with the instrument or cash having a front face and a backface. The front face and the back face of the instrument or cash arescanned to create a deposited instrument or electronic validation ofdeposited cash. The scanned deposited instrument or cash is transmittedfrom the first location to a second location and a transaction is thenprocessed with the scanned deposited instrument or electronic validationof deposited cash.

In another aspect, the invention relates to a system for conductingimage based transactions. A scanner is provided at a first locationwhich is configured for scanning the front face and the back face ofeither an instrument or cash, for creating a deposited instrument orelectronic validation of deposited cash. Means are provided fortransmitting the scanned deposited instrument or electronic validationof deposited cash from the first location to a second location. Suchmeans can include conventional existing transmission technology such asis used in a network environment including a public network such as theInternet, and involves commercially available and well-known electronic,computer and software tools. Means for receiving the transmitted scanneddeposited instrument is provided at the second location. Such devicesused for receiving are conventional, commercially available, andwell-known to those of ordinary skill in the art. At the secondlocation, there is provided means for processing a transaction with thescanned deposited instrument or electronic validation of deposited cash.Such means can also involve conventional computer technology anddatabase technologies for allowing processing of the transaction in adesired manner.

BRIEF DESCRIPTION OF THE DRAWINGS

Having briefly described the invention, the same will become betterunderstood from the following detailed discussion thereof, made withreference to the appended drawings, wherein:

FIG. 1 is a block diagram of a high-level system architecture showinginstrument, in particular, check imaging process flow as implemented inaccordance with the system of the invention;

FIG. 2 is a more detailed block diagram showing the various componentsimplemented in the system of the invention, which is more generallyillustrated in FIG. 1;

FIG. 3 is a block diagram illustrating MICR encoded facsimilepresentment;

FIG. 4 is a block diagram illustrating local scanned image presentmentto local banks;

FIG. 5 is a block diagram illustrating scanned image presentment andshared deposit taken to local and nonlocal banks;

FIG. 6 is a block diagram illustrating presentment in various forms toaccommodate the paying bank requirements;

FIG. 7 is a block diagram illustrating scanned image presentment incombination with merchant deposit taking, lock box, and other forms;

FIG. 8 is a flow diagram illustrating the image deposit flow when theinitial scan is implemented at an ATM;

FIG. 9 is a flow diagram illustrating image deposit flow when theinitial scan occurs at a teller station; and

FIG. 10 is a flow diagram illustrating what occurs after imagedepositing at the back office check processing center.

FIG. 11 illustrates an original check and an MICR image.

DETAILED DISCUSSION OF THE INVENTION

A general system overview of the invention is shown in FIG. 1 as system11. FIG. 1 generally shows a deposit location 13 connected through anetwork 15, or directly, to a database 25 and to a check processinglocation 17. The deposit location 13 includes a check imaging stationwhich can be an ATM or teller station 19 which is used to scan in thecheck, and to capture the MICR code line data via magnetic or opticalcharacter recognition (OCR) hardware and software technology, and eithertransmit it through a connection 23 to the network, which then in turnconnects to a check imaging server 27 providing short term storage atthe check process location 17, or transmits to an optional local server21 connected to a negative (fraud and loss detection) database 25, whichtransmits the check image to the check imaging server 27. The checkimage can then be transmitted to a check image database 31 connected tothe server 27 for manipulation at a terminal 33. At the terminal 33check editing and validation can be conducted. Similarly, a checkencoder 39 can serve to encode the check or alternatively the check canbe encoded automatically based upon the scanned image, and generate apaper check copy for transmission to a making bank 41. A check printer35 is connected to the server 27 from where check images can be printedand transmitted to the making bank 41. Similarly, a check sorter/imager37 can be connected to the image database 31 for providing appropriatesorting functionality.

Certain aspects of the system of FIG. 1 are further illustrated ingreater detail in FIG. 2. For instance, an alternative to an ATM can bea customer access terminal (CAT) 101 which can be the deposit location13 at the remote banking center. The CAT 101 will have a scanner orcheck imager in place of a traditional envelope deposit slot ascurrently used in automatic teller machines. In addition, the CAT willalso include a cash acceptor/validator as well as a cash dispenser toprovide functionality similar to automatic teller machines currently inuse. Thus, in accordance with its use, the CAT 101 is configured toaccept check or cash deposit items with no envelope. Two separate cashand check entry points may be used, but alternatively, a single entrypoint check scanner/validator can be used as may be readily apparent tothose of ordinary skill in the art. Such a device would combineconventional image scanning, magnetic and optical character recognition,and bank note validation hardware and software into a single device.

The CAT can be programmed to validate check items through MICR code lineand OCR software. When a check is scanned in, an image of each check ispresented on the customer display. The customer can then, using anappropriate keyboard, input the check amount. The CAT can then determinethe check amount through a combination of Courtesy Account Recognition(CAR) software and Legal Amount Recognition (LAR) software, for improvedconfidence. A comparison between the scanned amount and the enteredamount is made, and if there is a match, the transaction proceeds. Ifthe customer's input and the courtesy amount recognition differ, evenafter a customer's second input, the system will send the check image toa customer service operator who will be able to read the check andresolve any discrepancies.

A printer within the CAT 101 serves to print a transaction record withan image of selected elements of the check. The CAT 101 then compilesdeposit information such as the deposit account number, check courtesyamount, MICR code line data, cash deposit details, and the total depositamount to produce a facsimile of a deposit slip for a check processingcenter. The CAT is programmed to compress, encrypt and digitally signthe check image for transmission to a secure processing center through aconnection 23 to a network 15, which in turn connects through aconnection 29 to the check processing center 11.

Alternatively, the deposit location 13 can be a bank which can includeteller work stations 103, including scanners and/or a CAT 101 aspreviously described. Such a deposit location 13 would also be connectedthrough a connection 23 to a network 15 and/or a connection 29 to thecheck processing center 11.

As discussed with respect to FIG. 1, certain common elements areinterconnected as shown in greater detail in FIG. 2. Optionally, theimage server 27 is connected to a printer server 28 which serves tocontrol the check image printer 35, in this case a MICR laser printer.As the check images are printed, a single sheet of the check images isprovided to a sheet cutter 36 for cutting the individual check imageswhich are then provided to a reader/sorter 37 which is connected to acentral envelope processing unit 38 for what is then normal checkprocessing flow with the images, which would ordinarily have been donewith the original checks after pickup from the deposit locations 13.

Thus, as may be appreciated, in an embodiment of the present invention,a device scans the check to create an electronic image of the front andthe back of the check, captures the MICR code line data using magneticand/or optical character recognition technology, and then processes andtransmits the scanned check electronically to a central location. Basedupon the payor bank information transmitted to the central location, thepayor bank's desired method of payment is determined. The depositorybank sends out the instrument for collection as either an ACH item, andECP entry, a scanned image or a paper item. The electronic image isrecreated into a paper form resembling the original paper check, and thepaper form is MICR encoded by regenerating the captured MICR code linedata from the original check scanning process. In accordance with thesystem, a check can be scanned and subsequently presented locally (inthe same region as the payor or bank), which reduces the flow from theFederal Reserve system resulting from the transportation of checksbetween clearing houses and branches of the Federal Reserve regionalcheck processing centers.

Thus, when a customer uses the system, with an ATM/CAT, the customer whodesires to deposit a check follows the following procedure. The customeraccesses an electronic access device, such as in an ATM/CAT, by forexample, swiping a user card. The access device queries the customer asto whether the customer wants to make a deposit, and the customerindicates affirmatively that he wishes to make such a deposit. Theaccess device then provides an instruction to the customer to input thecheck or cash into a slot. The front and the back of the check are thenscanned, the MICR code line data is captured, and an image of the checkis presented to the customer. A courtesy and/or legal amountrecognition, i.e., an electronic reading of the amount the customer haswritten on the check, is then made using readily available software, andthe customer is asked to enter the amount of the check, for example,through a keyboard or keypad. If the amount determined by the accessdevice and the amount entered by the customer are the same, the accessdevice accepts the deposit. If the amounts are different, the customerre-enters the number. If the amounts still disagree, in an embodiment ofthe present invention, the ATM/CAT transmits an image of the check to acustomer service center, displays the check for an operator, and theoperator resolves any discrepancy.

After the check has been accepted and the amounts have been determinedto agree, the ATM/CAT stamps the check “VOID”, or prints otherappropriate language on the check to show that it is no longernegotiable, and then deposits the check into a locked depository. Thevoided checks are picked up periodically by a courier or by a bankinginstitution.

There is no requirement that the voided checks must be picked up on adaily basis, because the actual checks are not needed for furtherbanking activities as further described. Throughout the day, the ATM/CATtransmits the deposited images to a central location. From these digitalimages, the central location recreates the check onto paper in a formatthat looks similar to, or almost identical to, the original check. In anembodiment of the present invention, the processing facility MICRencodes the required information for check processing on the bottom ofthe check and enters the MICR encoded facsimile into the paperpresentment flow by sending the reproduced facsimile to a local federalreserve check processing center to be sent subsequently to the payingbanks.

This is more clearly illustrated by the block diagram of FIG. 3 in whichthe checks are scanned into a bank's ATM 251 and processed, aspreviously described, at block 253. An MICR facsimile is then generatedat block 255 and the encoded facsimile is presented as paper at thelocal Federal Office 257 to then be sent to the paying banks 259, 261,263.

In another embodiment of the invention, the check images, as illustratedin FIG. 4, are presented in a form in accordance with the location ofthe drawing bank. For example, if a check is drawn on a bank in theHouston area, the image itself would be sent directly to a facility inHouston such as the Houston Federal Office 258 to be sent subsequentlyto Texas banks 265. Similarly, the same could be done with the SanFrancisco Federal Office 258′ for processing by local banks, in thiscase, San Francisco banks 265′. Specifically, the depository bank cansend the electronic information directly to the payor bank or to anotherbank or service provider acting as the depository bank's representativeto create the MICR encoded facsimile. In this embodiment, the time delayfor the physical transportation of the piece of paper from, for example,the New York City area to San Francisco or Houston would be eliminated.Further, the availability of the funds to the depository bank from thedeposited check would no longer be one or two days later, but would, ineffect, be the same day or the next day. Thus, “float” is effectivelyminimized, and the risk associated with “float” to the Federal ReserveSystem is substantially reduced. As with the paper transmittal, in thisembodiment, each of the clearing houses or local federal reserve bankoffices that receive the check image, create a facsimile and send it outto local banks.

In another embodiment of the present invention, a system known as“shared deposit taking” is illustrated in FIG. 5. In an example ofshared deposit taking, a user other than a customer of the bankinginstitution that owns the ATM/CAT, accesses the ATM/CAT and makes adeposit in the same manner that the banking institution's own customerwould make the deposit, i.e., for example, as shown at block 267 of FIG.5. This is done from the user's access card and the banking institutiondiscerns that the customer is the depositor of another bankinginstitution. The banking institution for the ATM/CAT scans the depositedcheck, and then through a processing center or on-line network, sendsthe deposit record plus the image of the check to the user's bank 269.This function may be provided, for example, on a fee basis by the bankhaving the ATM/CAT, to the other banking institution.

In accordance with this aspect of the system, the banking institutionhaving the ATM/CAT can have the option of not picking up depositedchecks from the location every single day, and provides the ability toplace ATM/CAT's in very remote locations, and still operate themeconomically.

In a yet still further aspect, as illustrated in FIG. 6, the paying bankcan be provided with an option of how the bank would like presentment ofitems. For example, in another embodiment of the present invention, theprocessing facility that receives the check images identifies the bankand its routing transit number from the bottom of the check, looks upthese numbers on a table, and determines whether the paying bankrequires, for example, a paper check or an electronic check presentment(ECP) file as shown in block 271. Alternatively, a third party such asthe Federal Reserve Bank or a clearinghouse could maintain the table.For purposes of this disclosure, it is noted that an ECP file is anelectronic file of the MICR-band on the bottom of the check.

Another bank may want a full image file as noted at block 273, or insome cases an ACH (“Automated Clearinghouse”) file as shown in block275. As banks replace their hardware and software with higher level,more electronified processing, the present invention allows the entitymaintaining the bank files to simply change the table entry toautomatically change the preferred form for receiving the check. Thus,the present invention provides a method and system for transition frompaper to electronics for every bank in the country.

Since the images are accepted electronically and scanned electronically,an opportunity is provided to analyze the checks at the time of depositand determine whether various different types of fraud are beingattempted. For example, the deposited checks could be compared againston-line files of “no good” checks, and certain types of counterfeitscould be detected. A yet still further feature of the invention providesthat a record of the check, such as a reduced size image printout isprovided on the printed receipt, to the user at the ATM/CAT orpresentment location immediately upon input of the check.

In a yet still further embodiment as illustrated in block diagram formin FIG. 7, the invention provides banking institutions with thecapability to process deposits for other banks, allows accepting ofdeposits at merchant locations, and accepting transactions and checksfrom places like brokerage offices, businesses, lock boxes, overseaslocations, and bank branches and offices.

In this embodiment of the present invention, applications for thescanners are housed in non-automatic teller machine customer activatedterminal (non-ATM/CAT) environments as shown in blocks 277 of FIG. 7. Inan embodiment of the present invention, a device is provided that scanschecks and places them into a locked depository. This allows the use ofthe device in a number of situations other than banking institutions,such as at merchant sites. A merchant can input and receive checks intothe device or can accept deposits for banking institutions. Such checksare acceptable whether the checks are payable to the merchant or adeposit for the host or other banking institutions. The check images arescanned and then sent to the appropriate banking institution. In anembodiment for the lock box environments as illustrated in FIG. 7, whichinclude commercial applications, as the checks are processed, they arescanned and automatically transmitted to a check processing facility ora processing facility for the lock box. As noted previously, otherapplications include locations such as brokerage offices, which take insignificant numbers of checks payable to themselves or to one of theircustomers. Thus, transportation costs and delays in obtaining access tofunds are minimized by placing one of these devices within the officeitself. Such an application can also include any corporate environmentwhere large numbers of checks are taken in, wherever the corporation hasdifficulty and cost associated with transporting checks. Yet stillfurther, another application is in the overseas collection of checksdrawn on U.S. banks in U.S. Dollars. Scanning devices are placeableoverseas and checks may be accepted, voided their images sent to theUnited States and entered into the collection system. As notedpreviously, in addition to processing of checks, the system can be usedto process currency and a typical image deposit flow for both checks andcash at an ATM/CAT is further illustrated in FIG. 8.

Specifically, as illustrated in FIG. 8, at step 301 a customer requestsa deposit. The ATM/CAT queries the customer at step 303 to determine ifthe deposit is a check, cash or both. Deposit instructions are providedat step 305 and if the deposit is a check, the checks are accepted atstep 307 in bunch maximums of, for example, ten. The checks are scannedand verified and validated at step 309. If the verification operationdoes not validate the check, the check is returned at step 311 and thedisplay at the ATM/CAT displays the reason for returning the check atstep 313. If the checks are verified and validated, a check list isdisplayed at step 315 on the ATM/CAT display with the number and thepayee, and the amount is validated by a separate entry by the customerat step 317 where a customer amount validation is entered. If theamounts match, the customer is asked to verify and accept all checks atstep 321. If this is done, an image file is transmitted. Upon the nextscan, a query is made as to whether all the checks have been scanned andif the answer is no, the process returns to step “A” to scan the nextcheck from step 329. Once all checks are scanned, a summary of each isdisplayed at step 331 along with the total, and the customer is asked toverify the amount at step 333. If the customer verifies the amounts, thechecks are canceled and so marked at step 335, and moved to the storagebin at the ATM/CAT.

Returning to step 321, if the verification fails, the check is returnedat step 323 and the customer is requested at step 325 if they wish tocontinue. If the answer is yes, the process moves to step 329 andproceeds as described previously. If the answer is no, all the checksare returned at step 327.

Turning now to a deposit of cash as shown on the left hand of the flowdiagram of FIG. 8, at step 337, a determination is made as to whether toaccept the cash as single notes or collectively as a bunch, according tothe capability of the mechanism and the desire of the customer, andpreferably accepted only in $100, $50 and $20 Dollar bills. The cashbills are scanned and validated at step 339 and if they do not scancorrectly they are returned to the customer at step 341 with the reasonfor the return displayed. On the other hand, if accepted, at step 343 adeposit summary is shown and the customer is asked at step 345 to verifythe deposit summary. If the customer fails to verify the depositsummary, the bundle is returned at step 347 and the transaction isreversed at step 349. If verification proceeds, the cash is moved to thestorage bin at step 351 and file is sent to the back office at step 353.

In an alternative flow of the present invention, FIG. 9 shows a typicalimage deposit flow when a teller station is the point of deposit.Specifically at a step 401, a customer asks to deposit a check,including possibly receiving cash back, establishing both a deposit aswell as a customer record. Specifically, the teller follows standardprocedures at step 403. At a step 405, the checks are scanned and theteller verifies and corrects the account information, and if appropriateenters “less cash”. An MICR and image file are created. If the file iscomplete, at step 411, the file is transmitted to the branch server asshown in FIG. 9 for various routine operations as shown. At that pointat a step 413, a further query is made and if the transfer is not okay,then the unscanned check is again sent by courier at step 415. On theother hand, if this transfer is okay, the physical check is thencanceled and marked at step 417 and moved into a deposit bin at step 419and later couriered to the back office at step 421, as convenient. Theimage file is transmitted in batch form at step 423 from the branchserver to the back office and an acknowledgment is then received by theteller and the image is cleared from the branch server. Alternatively,the files can be transmitted throughout the day.

FIG. 10 illustrates in flow diagram form the operations at the backoffice check processing center when an image such as a check image isreceived at the back office image server at a step 501. As showntherein, a number of initial operations are made before furtherprocessing. In one instance, if certain rules are met at a step 507which requires that the check be reproduced, a number of steps areavoided and the check is queued at a step 527, after a number of stepsdiscussed hereafter, for reproduction from the image. Alternatively, itmay be required merely that the image be reviewed visually at a step505, in which case it is queued for visual review and then reviewed andtransmitted back to the step 507, as explained hereinafter.

If all data is received at step 507, credits are posted to accounts, aswell as float and delays at step 509. If it is determined it is thebank's check at step 511, the check is posted at step 513 and the imagearchived at step 515.

If it is another bank's check, the payor banks presentment preference isdetermined at step 517, as well as the routing preference at step 519.It then is transmitted as an ECP, ACH or Image, at 521, 523 or 525.

If the preference is for an MICR facsimile at 527, as describedpreviously, a paper facsimile (MEF) is created as a paper document at529 and sent to the local Federal or clearinghouse 533. Alternatively,it is sent direct to payor bank 535 or third party for posting its ownchecks and creating the paper image 537, and then forward to steps 531or 533 as before.

Thus, as can be appreciated from the previous description, the inventionencompasses three sources of check and cash deposits. Specifically, fullfunction ATM or CAT, deposit-only self-service terminals, and branchteller assisted operations are supported by the system.

With respect to the image deposit ATM, preferably, the image capable ATMwill replace traditional envelope depositor functions with a checkimager/depositor and a cash acceptor. As noted previously, two separatecash and check entry points may be used, but may also be combined intoone entry point for scanning. The ATM is configured to validate checkitems through MICR code line and OCR software as well as being capableof validating currency deposit items. A display permits presentment ofthe image of each check on the customer display and the machine allowsthe customer to input check amounts, using courtesy and legal amountrecognition software to assist as appropriate. It has the capability ofprinting the transaction record with image of selected elements of thecheck as well as compile deposit information such as deposit accountnumber, check courtesy amount, MICR code line data, cash deposit details(number of notes of each denomination, and total cash), and totaldeposit amount, to produce a facsimile of a deposit slip for the checkprocessing center. The automatic teller machine includes software tocompress, encrypt and digitally sign the check for transmission to asecure processing center, and has the capability to store the depositimage and information in a recoverable manner until it has beentransmitted to and acknowledge by a secure processing center.

With respect to the check scanning or accepting device, it is preferablyconfigured to accept personal and business size checks. It is capable ofcapturing MICR line data per banking standards, and is able to rejectitems, under software control, which do not have recognizable MICR code.It preferably captures a gray scale image of both sides of the checkwith a spatial resolution of at least 200 dots per inch and gray scaleof 256 levels (8 bits per dot). It has the capability to hold the checkitems in escrow until the customer and ATM software algorithms decidewhether to accept the check for deposit. Rejected checks may be returnedunmarked to the customer under program control. After the acceptancedecision is made, programmable endorsement and cancellation informationis applied on the back of the check with an inkjet printer module andink stamps. The front of the check must be printed to indicate that thecheck has been voided or the check must be destroyed. The accepted checkis then transported to a storage bin in the automatic teller machine.The scanner is configured to accept from one to ten checks in a bunch.Similarly, it is also capable of accepting cash. More typically, it isconfigured to validate and accept U.S. paper notes in specifieddenominations. As is well-known, this type of technology is readilyavailable such as with change machines currently in use which can beimproved in a routine and conventional manner. Thus, the unit is capableof accepting at least 98% of valid notes in good condition, and rejectall counterfeit notes.

With respect to the image server, it provides rudimentary storage andmanual processing of check image files transmitted from the automaticteller machine. Examples of software which is readily commerciallyavailable for use on the image server includes the Microsoft Windows NT4.0 Server Operating System, SQL Database, Visual Basic 5.0 Environment,and commercial graphic tools such as Lead Tools, Adobe Photoshop andPegasus Tool Kits. The print server will provide a framework for MICRprinter management software, and will be connected to the image serverthrough a local area network and to the MICR printer either through alocal area network, dedicated Ethernet LAN, Centronics or SCSI. Theprint server includes conventional software to prepare checkreproduction jobs using commercial software such as Adobe Photoshop, orthrough PCL 5. The print server software may include Windows NT 4.0Server Operating System and printer drivers for the attached MICRprinter. In addition, Visual Basic or C++ may be used to transfer checkimages and MICR code line data either manually or automatically from theimage server through Ethernet LAN. The MICR code line data istransferred to PCL fine language and transmitted to the MICR printerwith print format data and check image file data. A JPEG image filewithin a TIFF capture file will be rendered into graphics data for theprinter by commercially available software tools, such as from LeadTools or Pegasus. The printer server application will generate a page orpages containing the front and back images of reproduced checks for eachdeposit transaction. One side of the page will contain only check frontimages, and the other side of the page will contain only check backimages. The front and back images for each check must be registeredaccurately to allow the subsequent cutter operation to generate usablereproductions.

For the high speed MICR printer, an MICR laser printer such as oneavailable from Hewlett Packard under the commercial name HP5000, withMICR modifications, can be used to generate paper reproductions of checkimages. Such a printer is typically capable of printing more thantwenty-five pages per minute in text mode. The printer must be capableof encoding MICR code line data on the reproduction to ANSI standards,using the original check's captured MICR code line data as input.

Conventional paper cutters and check readers/sorters can be employed inthe system. An example of a check reader/sorter which can be used is oneavailable from NCR Corporation under the commercial name NCR7780, adedicated controller under the name NCR3349-2030 with LAN connection issupplied with the sorter.

Thus, as can be appreciated, the specific elements, including thevarious aspects of the network provide the various means andfunctionality for the system as described in the summary of theinvention previously, as well as set forth in the claims, as will bereadily apparent to those of ordinary skill in the art.

Having thus generally described the invention, the same will becomebetter understood from the appended claims in which it is set forth inan nonlimiting matter, and for which variations thereof may beencompassed by the appended claims.

1. A method for image based transactions, comprising, the steps of:scanning via a first computer software process executing on an imagingstation computer hardware device a front face and a back face of cashreceived for deposit at a first location and creating via the firstcomputer software process executing on the imaging station computerhardware device an electronic validation of deposited cash; transmittingby a second computer software process executing on the imaging stationcomputer hardware device the electronic validation of deposited cashfrom the first location via an imaging server to an image database at asecond location; and processing a transaction at the second locationwith the electronic validation of deposited cash via at least one of acomputer software process executing on an edit and validation computerhardware terminal device, a computer software process executing on anencoder computer hardware device, a computer software process executingon an image printer computer hardware device, and a computer softwareprocess executing on a sorter/imager computer hardware device, eachcoupled to the image database.
 2. The method of claim 1, furthercomprising the step of displaying an image of the scanned cash on aterminal display at the first location to provide confirmation to acustomer that the deposit has been accepted.
 3. The method of claim 2,further comprising separately entering the amount of the cash which hasbeen scanned, comparing the amount entered with the amount scanned, andwhen the scanned amount matches the entered amount, conducting theprocessing of the transaction.
 4. A system for conducting image basedtransactions, comprising: a first computer software process executing onan imaging station computer hardware device that scans a front face anda back face of cash accepted as a deposited item at a first location andcreates an image of the deposited cash; a second computer softwareprocess executing on the imaging station computer hardware device thatcreates and transmits an electronic validation of deposited cash fromthe first location via an imaging server to an image database at asecond location; and at least one of a computer software processexecuting on an edit and validation computer hardware terminal device, acomputer software process executing on an encoder computer hardwaredevice, a computer software process executing on an image printercomputer hardware device, and a computer software process executing on asorter/imager computer hardware device, each coupled to the imagedatabase, via which a transaction with the electronic validation ofdeposited cash is processed at the second location.
 5. The system ofclaim 4, further comprising a display screen of the imaging stationcomputer hardware device located at the first location that displays animage of the scanned cash and provides visual confirmation to a customerthat the deposit has been accepted.
 6. A method for image basedtransactions, comprising the steps of: scanning via a first computersoftware process executing on an imaging station computer hardwaredevice a front face and a back face of an original paper check receivedfor deposit at a first location and creating via the first computersoftware process executing on the imaging station computer hardwaredevice a deposited check; transmitting by a second computer softwareprocess executing on the imaging station computer hardware device animage of the scanned deposited check from the first location via animaging server to an image database at a second location; and processinga transaction at the second location with the scanned image of thedeposited check via at least one of a computer software processexecuting on an edit and validation computer hardware terminal device, acomputer software process executing on an encoder computer hardwaredevice, a computer software process executing on an image printercomputer hardware device, and a computer software process executing on asorter/imager computer hardware device, each coupled to the imagedatabase, without pickup of the original paper check received at thefirst location.
 7. The method of claim 6, wherein said processingcomprises crediting a deposit in the amount of the check to a customer'saccount.
 8. The method of claim 7, further comprising displaying animage of the scanned check on a terminal display at the first locationto provide confirmation to a customer that the deposit has beenaccepted.
 9. The method of claim 6, wherein the scanning is conducted onthe check and further comprising recreating the image of the scanneddeposited check onto paper.
 10. The method of claim 9, wherein saidrecreating of the check onto paper further comprises cutting the paperto the size of a check.
 11. The method of claim 10, wherein saidrecreating of the check onto paper is done at the second location. 12.The method of claim 6, wherein said first location is an automaticteller machine, owned and operated by a bank for its customers, having ascanner and display, and the method further comprising storing thescanned check in the automatic teller machine.
 13. The method of claim9, further comprising recreating the scanned deposited check into apaper image which is Magnetic Image Character Recognition (MICR)encoded.
 14. The method of claim 6, further comprising separatelyentering the amount on the check which has been scanned, comparing theamount entered with the amount scanned, and when the scanned amountmatches the entered amount, conducting the processing of thetransaction.
 15. The method of claim 6, further comprising composing,encrypting and digitally signing the check before the transmission tothe second location for processing.
 16. The method of claim 6, whereinsaid first location is an automatic teller machine that is at least oneof owned and operated by someone other than the owner of the secondlocation.
 17. The method of claim 6, wherein said first location is abranch of a bank.
 18. The method of claim 6, wherein said first locationis a retail business location.
 19. The method of claim 6, wherein saidfirst location is a business.
 20. The method of claim 6, wherein saidfirst location is outside the United States.
 21. The method of claim 6,further comprising voiding said check at the first location by printingon the check or destroying the check.
 22. The method of claim 6, furthercomprising endorsing the check.
 23. The method of claim 14, furthercomprising transmitting the image to another location to display to anoperator for resolution when the amounts entered and scanned differ. 24.The method of claim 6, further comprising comparing the information onthe check to information contained in a file of indicators of potentialloss.
 25. The method of claim 6, further comprising maintaining a fileof payor bank preferences for how the payor bank will receivepresentment, and processing the transaction in accordance with thepreferences.
 26. The method of claim 25, further comprising using theinformation in the payor bank preference file to determine whetherpresentment will be by paper, Extended Capabilities Port (ECP), image,or Automatic Clearing House (ACH).
 27. The method of claim 6, furthercomprising maintaining a file of routing preferences, and processing thetransaction in accordance with the preferences.
 28. A system forconducting image based transactions, comprising: a first computersoftware process executing on a scanner computer hardware device locatedat a first location that scans a front face and a back face of anoriginal paper check accepted as a deposited item at a first locationand creates an image of a deposited check; a second computer softwareprocess executing on the scanner computer hardware device that transmitsan image of the scanned deposited check from the first location via animaging server to an image database at a second location; and at leastone of a computer software process executing on an edit and validationcomputer hardware terminal device, a computer software process executingon an encoder computer hardware device, a computer software processexecuting on an image printer computer hardware device, and a computersoftware process executing on a sorter/imager computer hardware device,each coupled to the image database, via which a transaction with theimage of the scanned deposited check is processed at the second locationwithout pickup of the original paper check received at the firstlocation.
 29. The system of claim 28, wherein said transaction isprocessed with the same information as when the original was available.30. The system of claim 29, wherein said transaction is processed atleast in part by crediting a deposit in the amount of the scanned checkto an account of the customer.
 31. The system of claim 30, furthercomprising a display located at the first location for displaying animage of the scanned check, for providing visual confirmation to acustomer that the deposit has been accepted.
 32. The system of claim 28,further comprising a printer that recreates the check as an image onpaper, and composited with machine readable regenerated Magnetic ImageCharacter Recognition (MICR) encoding of the original check's MagneticImage Character Recognition (MICR) code line data.
 33. The system ofclaim 32, wherein said printer is located at the second location. 34.The system of claim 28, further comprising an automatic teller machinehaving said scanner thereon at the first location, and having a securedcontainer region therein for storing scanned checks in the automaticteller machine.
 35. The system of claim 32, wherein said printerrecreates the scanned image into a paper image which is Magnetic ImageCharacter Recognition (MICR) encoded, and composited withmachine-readable regenerated Magnetic Image Character Recognition (MICR)encoding of the original check's Magnetic Image Character Recognition(MICR) code line data.
 36. The system of claim 28, further comprising aninput device of the scanner computer hardware device via which entry ofan amount on the check which has been scanned is separately received;and a third computer software process executing on the scanner computerhardware device that compares the amount entered with an amount scannedand allows transmission to conduct processing of the transaction. 37.The system of claim 28, further comprising a fourth computer softwareprocess executing on the scanner computer hardware device thatcompresses, encrypts and digitally signs the scanned check beforetransmission to the second location for processing.
 38. The system ofclaim 28, further comprising one of the computer software processexecuting on the encoder computer hardware device at the second locationand the computer software process executing on the image database at thesecond location that sends the image of the scanned deposited checkreceived by the image database to a third location for processing withinor for another bank.
 39. The system of claim 28, further comprising thecomputer software process executing on the image database at the secondlocation that sends the image of the scanned deposited check received bythe image database to a Federal Reserve Bank or one of its offices or aclearinghouse as a third location, and the third location has means forcreating the images on paper and Magnetic Image Character RecognitionMICR encodes them for entry into the check processing system or sendingthe information to a bank for payment.
 40. The system of claim 28,further comprising the computer software process executing on the imagedatabase at the second location that sends the image of the scanneddeposited check received by the image database directly to a payor bankor its processing agent or correspondent for payment.
 41. The system ofclaim 28, further comprising a device having said scanner computerhardware device thereon at the first location, and having a securedcontainer region therein for storing scanned checks at a branch of abank.
 42. The system of claim 28, further comprising a device havingsaid scanner computer hardware device thereon at the first location, andhaving a secured container region therein for storing scanned checks ata business.
 43. A method for image based transactions, comprising:scanning via a first computer software process executing on an imagingstation computer hardware device a front face and a back face of anoriginal paper check received for deposit at a first location andcreating via the first computer software process executing on theimaging station computer hardware device a deposited check; transmittingby a second computer software process executing on the imaging stationcomputer hardware device an image of the scanned deposited check fromthe first location via an imaging server to an image database at asecond location; and processing a transaction at the second locationwith the scanned image of the deposited check via at least one of acomputer software process executing on an edit and validation computerhardware terminal device, a computer software process executing on anencoder computer hardware device, a computer software process executingon an image printer computer hardware device, and a computer softwareprocess executing on a sorter/imager computer hardware device, eachcoupled to the image database, without verification of a signature of auser initiating the transaction, which signature is used to verify thatthe user is a profiled user with a specified system, and without pickupof the original paper check received at the first location.
 44. Themethod of claim 43, wherein said transaction is cashing the check. 45.The method of claim 43, wherein said transaction is depositing the checkamount in a user's account.
 46. The method of claim 43, wherein saidtransaction is making a purchase at a vendor, with the vendor locationbeing said first location.
 47. The method of claim 43, wherein saidtransaction is conducted between unrelated systems, wherein said firstlocation is part of one network and said second location is part of asecond network.
 48. A system for conducting image based transactions,comprising: a first computer software process executing on a scannercomputer hardware device located at a first location that scans a frontface and a back face of an original paper check accepted as a depositeditem at a first location and creates an image of a deposited instrument;a second computer software process executing on the scanner computerhardware device that transmits an image of the scanned deposited checkfrom the first location via an imaging server to an image database at asecond location; and at least one of a computer software processexecuting on an edit and validation computer hardware terminal device, acomputer software process executing on an encoder computer hardwaredevice, a computer software process executing on an image printercomputer hardware device, and a computer software process executing on asorter/imager computer hardware device, each coupled to the imagedatabase, via which a transaction with the image of the scanneddeposited check is processed at the second location without verificationof a signature of a user initiating the transaction, which signature isused to verify that the user is a profiled user within a specifiedsystem, and without pickup of the original paper check received at thefirst location.
 49. The system of claim 48, wherein said system isconfigured for conducting cashing of the check.
 50. The system of claim48, wherein said system is configured for conducting a deposit of thecheck amount in a user's account.
 51. The system of claim 48, whereinsaid first location is a vendor location, said second location is a banklocation, and said system is configured to allow making a purchase atthe vendor location.
 52. The system of claim 48, wherein said firstlocation is part of one network and said second location is part of asecond network.
 53. A method for image based transactions, comprisingthe steps of: receiving for deposit via a first computer softwareprocess executing on a self-service transaction terminal computerhardware device at a first location a check having a front face and aback face, wherein the check is an original paper check; scanning via asecond computer software process executing on the self-servicetransaction terminal computer hardware device the front face and theback face of the paper check and creating via the second computersoftware process executing on the self-service transaction terminalcomputer hardware device a deposited check; marking via a third computersoftware process executing on the self-service transaction terminalcomputer hardware device the paper check with an indicia ofnon-negotiability and storing by the third computer software processexecuting on the self-service transaction terminal computer hardwaredevice the marked paper check in a depository at the first location;transmitting by a fourth computer software process executing on theself-service transaction terminal computer hardware device an image ofthe scanned deposited check from the first location via an imagingserver to an image database at a second location; and processing atransaction at the second location with the scanned image of thedeposited check via a computer software process executing on an edit andvalidation computer hardware terminal device coupled to the imagedatabase.
 54. The method of claim 53, further comprising storing thepaper check by the third computer software process executing on theself-service transaction terminal computer hardware device for apre-determined delay period before pickup of the original paper check.55. The method of claim 53, further comprising storing the paper checkby the third computer software process executing on the self-servicetransaction terminal computer hardware device without pickup of theoriginal paper check.
 56. A system for conducting image basedtransactions, comprising: a first computer software process executing ona self-service transaction terminal computer hardware device via which acheck having a front face and a back face is accepted as a depositeditem at a first location, wherein the check is an original paper check;a second computer software process executing on a scanner computerhardware device coupled to the self-service transaction terminalcomputer hardware device located at the first location that scans thefront face and the back face of the check and creates an image of adeposited check; a third computer software process executing on theself-service transaction terminal computer hardware device via which theoriginal paper check is marked with an indicia of non-negotiability andstored in a depository at the first location; a fourth computer softwareprocess executing on the self-service transaction terminal computerhardware device that transmits an image of the scanned deposited checkfrom the first location via an imaging server to an image database at asecond location; and a computer software process executing on an encodercomputer hardware device coupled to the image database, via which atransaction with the image of the scanned deposited check is processedat the second location.
 57. The system of claim 56, further comprisingthe third computer software process executing on the self-servicetransaction terminal computer hardware device that stores the originalpaper check for a pre-determined delay period before pickup of theoriginal paper check.
 58. The system of claim 56, further comprising thethird computer software process executing on the self-servicetransaction terminal computer hardware device that stores the originalpaper check without pickup of the original paper check.
 59. A method forimage based transactions, comprising: receiving for deposit via a firstcomputer software process executing on a self-service transactionterminal computer hardware device at a first location a check having afront face and a back face, wherein the check is an original papercheck; scanning via a second computer software process executing on theself-service transaction terminal computer hardware device the frontface and the back face of the original paper check and creating via thesecond computer software process executing on the self-servicetransaction terminal computer hardware device a deposited check; markingvia a third computer software process executing on the self-servicetransaction terminal computer hardware device the original paper checkwith an indicia of non-negotiability and storing by the third computersoftware process executing on the self-service transaction terminalcomputer hardware device the marked original paper check in a depositoryat the first location; transmitting by a fourth computer softwareprocess executing on the self-service transaction terminal computerhardware device an image of the scanned deposited check from the firstlocation via an imaging server to an image database at a secondlocation; and processing via a computer software process executing on animage printer computer hardware device coupled via a check imagingserver to the image database a transaction at the second location withthe scanned image of the deposited check without verification of asignature of a user initiating the transaction, which signature is usedto verify that the user is a profiled user with a specified system. 60.The method of claim 59, further comprising storing the paper check bythe third computer software process executing on the self-servicetransaction terminal computer hardware device for a pre-determined delayperiod before pickup of the original paper check.
 61. The method ofclaim 59, further comprising storing the original paper check by thethird computer software process executing on the self-servicetransaction terminal computer hardware device without pickup of theoriginal paper check.
 62. A system for conducting image basedtransactions, comprising: a first computer software process executing ona self-service transaction terminal computer hardware device via which acheck having a front face and a back face is accepted as a depositeditem at a first location, wherein the check is an original paper check;a second computer software process executing on a scanner computerhardware device coupled to the self-service transaction terminalcomputer hardware device located at the first location that scans thefront face and the back face of the check and creates an image of adeposited check; a third computer software process executing on theself-service transaction terminal computer hardware device via which theoriginal paper check is marked with an indicia of non-negotiability andstored in a depository at the first location; a fourth computer softwareprocess executing on the self-service transaction terminal computerhardware device that transmits an image of the scanned deposited checkfrom the first location via an imaging server to an image database at asecond location; and a computer software process executing on asorter/imager computer hardware device coupled to the image database viawhich a transaction with the image of the scanned deposited check isprocessed at the second location without verification of a signature ofa user initiating the transaction, which signature is used to verifythat the user is a profiled user within a specified system.
 63. Thesystem of claim 62, further comprising the third computer softwareprocess executing on the self-service transaction terminal computerhardware device that stores the original paper check for apre-determined delay period before pickup of the original paper check.64. The system of claim 62, further comprising the third computersoftware process executing on the self-service transaction terminalcomputer hardware device that stores the paper check without pickup ofthe original paper check.